Adoption of analytics in retail | Retail Analytics
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The document discusses the importance of analytics in retail, emphasizing its role in fact-based decision-making and competitive advantage. Key benefits include potential revenue growth of 15%, a 26% increase in operational efficiency, and strategies for addressing retail shrinkage and customer attrition. An implementation plan outlines various analytics applications, such as HR, fraud, supply chain, and marketing analytics, alongside the need for leadership commitment and resources to support these initiatives.
Adoption of analytics in retail | Retail Analytics
- 2. Analytics: A business reality now Why do we need Analytics? Implementation Plan Expected benefits Taking the next step…
- 3. Analytics: A business reality now Focus is on fact-based rather than gut based decision making. Analytics is a strategic weapon for businesses. Customer analytics are driving big data initiatives. 53% of big data efforts underway by retail companies are focused on achieving customer-centric outcomes Organizations are being practical about adopting Analytics 74% of retailer say that leadership is totally or highly committed to analytics.
- 4. Analytics in Retail Opportunity to achieve competitive advantage from ‘Analytical Retail ‘ is enormous. Few examples: Kroger gets a 40% redemption rate from its analytically target coupons compared to industry average of 2% Tesco uses supply chain analytics to save $100m German retail giant Otto Group used predictive analytics to save $20m
- 5. Analytics: A business reality now Why do we need Analytics? Implementation Plan Expected benefits Taking the next step…
- 6. Why do we need Analytics? Pain Points of the Company The companies YOY revenue growth is not meeting our expectations Retail shrinkage of the company is 2% of our annual retail sales The attrition level is 5% above the industry average
- 7. Why do we need Analytics? Opportunities to explore Develop close relationships with customers based on a deep understanding of their behaviors and needs. Determine the best use of marketing investments. Balance inventory with demand so that we are never out of stock or carrying excess inventory. Locate stores, distribution centers, and other facilities in optimal locations.
- 8. Analytics: A business reality now Why do we need Analytics? Implementation Plan Expected benefits Taking the next step…
- 9. Implementation Plan HR Analytics Fraud Analytics Supply Chain Analytics Marketing Analytics
- 10. HR Analytics HR Analytics Creating value in human capital Raise Visibility Align HR data with business data Predict the future
- 11. Fraud Analytics Cultural Assessment Understanding activity Patterns Continuous monitoring & innovation
- 12. Supply Chain Analytics Inventory Management Sales Forecasting
- 13. Marketing Analytics Evaluate consumer purchasing behavior, identification of the combination of the products buying together Predictive modeling to evaluate price elasticity, margin target, profit and revenue maximization CRM analytics(demographic, psychographic & purchase behavior), cross-selling and up-selling strategies. Better store layout planning and assortment optimization
- 14. Infrastructure Requirements Developing a CoE Dedicated captive center for analytics Building expertise in analytics Creating awareness IT requirements Analytical tools and software EDW
- 15. Analytics: A business reality now Why do we need Analytics? Implementation and Execution plan Expected benefits Taking the next step…
- 16. Expected Benefits • Our YOY revenue growth will be 15% • Projected increase in the operational efficiency is 26% • Footfalls and average bill value will increase by 2% each • Gross Margin to increase by 1% by promoting more private labels • We would be able to reduce our retail shrinkage to 1% • We would be able to reduce our attrition level by 10% • All the above factors will lead to overall profit increase by 10%
- 17. Taking the next step… Need your support, commitment and desire to implement Need to appoint a Analytics head Spread the awareness among the employees
- 18. Thank You